The paper examines policy issues in the area of gifted education. The first section reviews the problem area including definitions of giftedness and aims of gifted education. The next section briefly outlines major research influences which focus on learning rate, socialization, school achievement, and life achievement. The third section reviews regional and national provisions for gifted students which discuss early provisions, the surveys of Sidney Marland and Patricia Bruce Mitchell, and the two recent surveys of P. O'Connell and June Cox. The final section of the paper discusses issues that decision makers need to consider when they plan policy initiatives. Structured around three themes--substantive aims, effective programs, and state-level administrative leadership--the section synthesizes policy implications, and describes and gives exemplary language for five policy recommendations. The following five policy initiatives are encouraged: (1) clarify definitions and aims; (2) increase the number of effective program options; (3) recruit good teachers for gifted students; (4) improve training for teachers of gifted students; and (5) strengthen state-level support for gifted programs. (DB)